It’s not only property you have at your fingertips as investment opportunities and income streams in retirement. Did you know currency remains the most popular form of investment, even exceeding trading stocks on the share market or having a portfolio of shares?
While many people might be under the assumption that trading currency – known as forex trading – is better suited to the younger generation, the opposite is actually true, with several factors making it perfect for seniors and retirees.
Here are 5 key reasons why currency trading is perfect for retired and senior individuals, with the help and advice of a professional currency trader and forex broker.
1. Extensive tutorials and support
The forex trading industry has improved significantly at training those new to currency trading. Forex brokers offer outstanding online training, and some provide a dedicated account manager matched to your level of understanding.
Almost all forex brokers also offer free demonstration accounts. This allows you to trade with virtual funds to familiarise yourself with currency trading in a risk-free environment.
2. Low deposits
Most forex brokers require very low minimum deposits, starting from just $100. This means you can start trading small amounts, which can then be increased as your experience and risk appetite increases.
Forex brokers such as Easy Markets also have negative balance protection, ensuring you can’t lose more than your deposit. This provides certainty of how much you are trading and risking on currency markets.
Forex brokers also make funding accounts easy from BPAY, credit cards, PayPal and bank transfers.
3. Convenient trading hours
Unlike the share market, currency markets are open 24 hours during business days. Many seniors and retirees want to trade at times that suit them, such as the morning which forex trading allows. Forex broker customer service is also available 24 hours on business days to cater for those trading outside of Australian business hours.
The forex trading hours schedule lists when one market closes and another one opens. However, if you’re obtaining the services of a forex broker, trading will remain seamless as trading transitions from one market to another.
4. The ability to leverage
“Leverage” is the ability to multiply the value of currency traded on markets to increase profits/losses. For example, a 100:1 leverage will mean that a $1,000 deposit can lead to $100,000 being effectively traded on currency markets. In this scenario, a currency movement of just 0.5% would lead you to gain or lose 50% of your deposit.
A high leverage forex broker table shows that the highest leverage from Australian forex brokers is 500:1. This amplifies the risks of forex trading, so it’s important to gain experience and a strong understanding from a forex broker first before accepting the maximum leverage available.
5. Low trading costs
Most forex brokers offer accounts with no commissions. This makes it easy to calculate the costs of trading currency.
Understand the risk of currency trading
Please be aware that it is critical to be aware of the risks involved. Currency trading does involve a high degree of risk, just like any other trading market – perhaps even higher. So please seek the advice of professional and experienced forex traders before you embark on this type of investment.
It’s also strongly recommended to use an Australian forex broker that is ASIC regulated with an Australian Financial Services Licence. If you have heard of forex scams or unethical broker behaviour, the odds are these are from unregulated overseas brokers. Make sure the forex broker is credible, licensed and meets the needs of your trading requirements. Compare Forex Brokers provides a list of regulated forex brokers to consider if you’re interested in forex trading.